What is the role of the Federal Open Market Committee (FOMC)?
(A) It makes key decisions about interest rates and the growth of the United States money supply.
(B) It redraws the map of the 12 Federal Reserve Districts every ten years in response to economic changes.
(C) It collects information on each Federal Reserve District and reports on economic conditions to the Board of Governors.
(D) Composed of seven members appointed by the President, it oversees the Federal Reserve System.
Ans: (A) It makes key decisions about interest rates and the growth of the United States money supply.
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Your wage this year is $15 per hour and the CPI is 178. Next year you get a raise to $17 and the CPI rises to 185. What has happened?
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